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Good News! Central employees got Diwali gift, dearness allowance increased by 3 percent

A big decision has been taken today for the central government employees and pensioners. As a Diwali gift for them, it has been decided to increase the dearness allowance.




A big decision has been taken today for the central government employees and pensioners. As a Diwali gift for them, it has been decided to increase the dearness allowance. In the cabinet meeting on Thursday, it has been approved to increase dearness allowance by 3 percent for central government employees and pensioners.

A further increase of 3 per cent in DA means that now Dearness Allowance (DA) will be 31 per cent. More than 1 crore central employees and pensioners will get the direct benefit of this increase.

Giving information about the cabinet’s decision today, Union Minister Anurag Thakur said that for this, the government will spend about Rs 9488 crore every year. This increase will be applicable from 1 July 2021.

It is worth noting that in July this year itself, the government had increased the dearness allowance (DA Hike) by 11 percent to 28 percent. Earlier, DA was being paid at the rate of 17 per cent.

Why the increase

In fact, the Labor Ministry had released the figures of the last three months of AICPI (All India Consumer Price Index). These included the numbers of June, July and August. The AICPI index has reached 123 points in August. From this it was indicated that the government can make further progress in dearness allowance. On the basis of this, dearness allowance of central employees is decided.

Effect of increase in other allowances also

With the increase in dearness allowance, other allowances will also increase. This includes Travel Allowance and City Allowance. At the same time, there will be an increase in Provident Fund and Gratuity for retirement.

In a year, you will get the benefit of at least this much

The calculation of the benefit on the minimum salary of Rs 18000 will be like this-

1. Basic salary of the employee                            Rs. 18,000
2. New Dearness Allowance (31%)                       Rs.5580/month
3. Dearness Allowance so far (28%)                     Rs.5040/month
4. How much dearness allowance increased          5580-5040 = Rs 540/month
5. Increase in annual salary                                 540X12 = Rs 6480

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